Digi’s largest shareholder Telenor and Axiata in advanced discussions to merge Malaysian operations

Press Release
April 7, 2021

Kuala Lumpur, 8 April 2021 - The Board of Directors of Digi.Com Berhad (“Digi”) was informed by its largest shareholder Telenor Group (“Telenor”) that Telenor and Axiata Group Berhad (“Axiata”) are in advanced discussions to merge the telco operations of Celcom and Digi (“MergeCo”), in which Telenor and Axiata will have an equal ownership of 33.1% each.

The parties aim to create a leading telecommunication service provider in Malaysia with the capabilities to drive research and innovation, and facilitate a platform for accelerated digital growth in the local ecosystem. A progressive digital economy is important to Malaysia’s future economic resilience and competitiveness, and the MergeCo will be well positioned for delivering industry innovation, high-quality connectivity, and a diversified value proposition to the customers.

The Board of Digi.Com Berhad has been informed that Telenor and Axiata will work towards finalizing agreements in relation to the proposed transaction within the second quarter of 2021 following due diligence.

“The Board notes the proposal for the merger of Celcom and Digi, and the exciting prospect of creating a Malaysian market leader through the proven capabilities of the two established operating companies and the strength of two international telecom leaders Axiata and Telenor. It underpins a shared vision to create value through product and market innovation and high-quality data connectivity, to power Malaysia’s digital ambitions in the years to come,” said Haakon Bruaset Kjoel, Chair of the Board of Directors of Digi.Com Bhd.

The transaction will be subject to relevant board and shareholder approvals by Digi and Celcom, receipt of regulatory approvals, and other customary terms and conditions.  The parties acknowledge that there is no certainty that these discussions will result in any agreement.

For further details, please refer to the related announcement on www.telenor.com.